Absorption costing is also referred to as
A)variable costing.
B)full costing.
C)nominal costing.
D)period costing.

Question

Quizplus · Accepted Answer

Absorption costing is also known as full costing because it includes all manufacturing costs, both variable and fixed, in the cost of a product. This includes direct materials, direct labor, and overhead costs. Other costing methods, such as variable costing, only include the variable costs in the cost of a product. Nominal costing and period costing are not accurate terms for absorption costing.

Absorption Costing Is Also Referred to as